Virtus Oil and Gas Signs Letter of Intent to Purchase Oil and Gas Field in San Juan County, UtahVirtus Oil and Gas Corporation (OTCBB: VOIL) ("Virtus" or "the Company") today announced it has signed a letter of intent with a US subsidiary of an international Oil and Gas Company, to acquire its U.S. operated, producing Oil and Gas Fields in San Juan County, Utah.
Under the terms of the letter, VOIL has 30 days to conduct and complete its due diligence on the title, compliance, and facility review and finalize the pending offer subject to the third party Reserve Report. VOIL is currently compliant with State of Utah and the Bureau of Land Management to Operate and produce in the state of Utah and will be using previous bond in place to do this.
More details to follow.
Rupert Ireland, Rupert Ireland, CEO of Virtus, said: "This is the beginning of a few acquisitions we hope to announce to the market. My team has been thoroughly evaluating potential prospects for acquisition since our oil traces discovery in the Parowan. Our overhead and expenses make us unique in that we are trimmed so low that acquiring production makes us very attractive during the market downtime. Eventually when oil prices recover these assets will be impressive in our company's portfolio while providing cash-flow now."
Bret Murray, COO of Virtus, said: "Our focus during this downtime has been acquiring production that is cash-flow positive at these times. The experience I have in the Paradox made sense for our team to identify and acquire existing production to get revenues for VOIL. These wells have 123, 727bo cumulative since inception and near 500MCF of natural gas and all gathering lines in place to market. We have engaged the services of a Professional Engineering firm to produce a Reserve Report to gauge futures and proven reserves."